Process Detector (For DVFS and monitoring process variation), TSMC 12FFC
Rambus Reports Fourth Quarter and Fiscal Year 2022 Financial Results
SAN JOSE, Calif. – February 6, 2023 – Rambus Inc. (NASDAQ:RMBS), a provider of industry-leading chips and IP making data faster and safer, today reported financial results for the fourth quarter ended December 31, 2022. GAAP revenue for the fourth quarter was $122.4 million; licensing billings were $64.3 million, product revenue was $67.2 million, and contract and other revenue was $23.8 million. The Company also generated $51.3 million in cash provided by operating activities in the fourth quarter.
“Rambus delivered a tremendous performance in 2022, achieving record annual product revenue and cash from operations,” said Luc Seraphin, chief executive officer of Rambus. “Our strategic focus on the data center and strong execution across our diverse offerings continues to drive the company’s long-term profitable growth and enables consistent capital returns to our stockholders.”
|Quarterly Financial Review – GAAP||Three Months Ended December 31,|
|(In millions, except for percentages and per share amounts)||2022||2021|
|Contract and other revenue||23.8||13.6|
|Cost of product revenue||$28.2||$13.4|
|Cost of contract and other revenue||$1.6||$0.7|
|Amortization of acquired intangible assets (included in total cost of revenue)||$3.6||$3.6|
|Total operating expenses (1)||$72.8||$65.1|
|Diluted net income per share||$0.14||$0.05|
|Net cash provided by operating activities||$51.3||$72.2|
(1) Includes amortization of acquired intangible assets of approximately $0.4 million for both the three months ended December 31, 2022 and 2021.
|Quarterly Financial Review – Supplemental Information(1)||Three Months Ended |
|Licensing billings (operational metric) (2)||$64.3||$66.6|
|Product revenue (GAAP)||$67.2||$45.3|
|Contract and other revenue (GAAP)||$23.8||$13.6|
|Non-GAAP cost of product revenue||$28.1||$13.3|
|Cost of contract and other revenue (GAAP)||$1.6||$0.7|
|Non-GAAP total operating expenses||$55.8||$51.4|
|Non-GAAP interest and other income (expense), net||$(0.7)||$(1.1)|
|Diluted share count (GAAP)||111||115|
(1) See “Supplemental Reconciliation of GAAP to Non-GAAP Results” table included below.
(2) Licensing billings is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences relating to advanced payments for variable licensing agreements.
GAAP revenue for the quarter was $122.4 million. The Company also had licensing billings of $64.3 million, product revenue of $67.2 million, and contract and other revenue of $23.8 million. The Company had total GAAP cost of revenue of $33.4 million and operating expenses of $72.8 million. The Company also had total non-GAAP operating expenses of $85.4 million (including non-GAAP cost of revenue). The Company’s annual product revenue increased 58% year over year as the Company continues to gain market share. The Company had GAAP diluted net income per share of $0.14. The Company’s basic share count was 108 million shares and its diluted share count was 111 million shares.
Cash, cash equivalents, and marketable securities as of December 31, 2022 were $313.2 million, an increase of $48.4 million as compared to September 30, 2022, mainly due to cash provided by operating activities of approximately $51.3 million. Cash provided by operating activities for the year ended December 31, 2022 was $230.4 million, an increase of $21.2 million or 10%, from the same period in the prior year.
2023 First Quarter Outlook
The Company will discuss its full revenue guidance for the first quarter of 2023 during its upcoming conference call. The following table sets forth first quarter outlook for other measures.
|(In millions)||GAAP||Non-GAAP (1)|
|Licensing billings (operational metric) (2)||$61- $67||$61- $67|
|Product revenue||$57 – $63||$57 – $63|
|Contract and other revenue||$19 – $25||$19 – $25|
|Total operating costs and expenses||$104 – $100||$87 – $83|
|Interest and other income (expense), net||$0||($1)|
|Diluted share count||110||110|
(1) See “Reconciliation of GAAP Forward Looking Estimates to Non-GAAP Forward Looking Estimates” tables included below. Note that the applicable non-GAAP measures are presented, and that revenue is solely presented on a GAAP basis.
(2) Licensing billings is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences relating to advanced payments for variable licensing agreements. This metric is the same for both GAAP and non-GAAP presentations.
For the first quarter of 2023, the Company expects licensing billings to be between $61 million and $67 million. The Company also expects royalty revenue to be between $25 million and $31 million, product revenue to be between $57 million and $63 million and contract and other revenue to be between $19 million and $25 million. Revenue is not without risk and achieving revenue in this range will require that the Company sign customer agreements for various product sales and solutions licensing, among other matters.
The Company also expects operating costs and expenses to be between $104 and $100 million. Additionally, the Company expects non-GAAP operating costs and expenses to be between $87 million and $83 million. These expectations also assume non-GAAP interest and other income (expense), net, of ($1 million), tax rate of 24% and diluted share count of 110 million, and exclude stock-based compensation expense ($13 million), amortization expense ($4 million), non-cash interest expense on convertible notes ($0.1 million) and interest income related to the significant financing component from fixed-fee patent and technology licensing arrangements ($1 million).
Rambus management will discuss the results of the quarter during a conference call scheduled for 2:00 p.m. PT today. The call will be webcast and can be accessed via Rambus’ website at investor.rambus.com. A replay will be available following the call on the Rambus Investor Relations website or for one week at the following numbers: (866) 813-9403 (domestic) or (+44) 204-525-0658 (international) with ID# 579366.
To read financial tables, click here
Search Silicon IP
Rambus Inc. Hot IP
- Cadence Reports Fourth Quarter and Fiscal Year 2022 Financial Results
- Rambus Reports Fourth Quarter and Fiscal Year 2021 Financial Results
- Rambus Reports Fourth Quarter and Fiscal Year 2020 Financial Results
- Rambus Reports Fourth Quarter and Fiscal Year 2019 Financial Results
- Rambus Reports Fourth Quarter and Fiscal Year 2016 Financial Results
- Interview: Aart de Geus on AI-driven EDA
- CXL Testing Leverages PCIe Expertise
- Blue Ocean Smart System Unveils Chiplet-Based Products Powered by VeriSilicon's High-Performance Processors
- POLYN Introduces VibroSense, Industry-First Application-Specific Vibration Pre-Processing Chip Design
- Renesas Expands RISC-V Embedded Processing Portfolio with New Voice-Control ASSP Solution
- Veriest Solutions Promotes Dusica Glisic to Vice President of Frontend Engineering
- Synopsys.ai Unveiled as Industry's First Full-Stack, AI-Driven EDA Suite for Chipmakers
- Report: Arm proposes change to IP royalty model
- eMemory and UMC Expand Low-Power Memory Solutions for AIoT and Mobile Markets with 22nm RRAM Qualification
- Mobiveil's PSRAM Controller IP Lets SoC Designers Leverage AP Memory's Xccela x8/x16 250 MHz PSRAM Memory
|E-mail This Article||Printer-Friendly Page|